Horizontal Product Differentiation in Auctions and Multilateral Negotiations
Bibliographic Data
| ID | 9724269 |
|---|---|
| Authors | Charles J Thomas (Chapman University), Bart J Wilson (0000-0001-5770-0102, Chapman University) |
| Year | 2014 |
| Volume | 81 |
| Issue | 324 |
| Pages | 768-787 |
| Publication date | 2014-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12090 |
| OpenAlex | W3121910095 |
| Language | EN |
| Citations received | 1 |
| References cited | 23 |
We experimentally compare first‐price auctions and multilateral negotiations after introducing horizontal product differentiation into a standard procurement setting. Both institutions yield identical surplus for the buyer, a difference from prior findings with homogeneous products that results from differentiation's influence on sellers' pricing behaviour. The data are consistent with this finding being driven by concessions from low‐cost sellers in response to differentiation reducing their likelihood of being the buyer's surplus‐maximizing trading partner. Further analysis shows that introducing product differentiation increases the intensity of price competition among sellers, which contrasts with the conventional wisdom that product differentiation softens competition
Business · Common value auction · Competition (biology) · Cournot competition · Economic surplus · Economics · Homogeneous · Market economy · Microeconomics · Negotiation · Procurement · Product (mathematics) · Product differentiation · Yield (engineering) · Auction Theory and Applications · Law, Economics, and Judicial Systems · Mathematics · Public Procurement and Policy
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |